Property Market On Mallorca

Mallorca has always been a popular holiday destination with tourists from around the world, due to its wonderfully warm climate, stunning beaches and Mediterranean cuisine. However, in the past few years, Mallorca has seen a property market boom – faring much better than the rest of Spain. Holidaymakers are falling in love with the island’s charm and wanting something more permanent. Luxury villas and luxury apartments, in particular, are experiencing an immensely high demand in recent years by numerous nationalities. In general, people are looking for family homes with great views, privacy, and their own swimming pool.

With more than 3,000 holiday villas in Mallorca completely fully booked during the summer months, potential investors in Mallorcan property can relax in the knowledge that renting their villa will guarantee their investment. It seems that people moving to Mallorca are either planning on doing so permanently or looking for the perfect second home.

The majority looking to buy luxury property in Mallorca are British (60%), with around a quarter German (estimated at around 80,000 residents), and the remaining Russian, Scandinavian, Australian, Spanish and South African. The Spanish government is offering incentives to non-European citizens investing in Mallorcan property, making it much easier to obtain a NIE number and Spanish residency.

The south west region of Mallorca has become the most sought-after area for property buyers, mainly due to its fine weather. The winter in the south west is very different to the north or east, as it is protected by the extensive mountain range which runs the length of the island. The areas just north of Palma experience the most pleasant winters. The south west region has an active and lively social scene all year round, with many restaurants, shops and bars catering for all nationalities. Many properties in the south west either dot along the coastline with stunning sea views, look out over marinas, or situate within luxury golf course developments. Peaceful rural retreats can also be found in quiet villages here, and the airport is only half an hour away.

Supply and demand in Mallorca is much more evenly balanced than the rest of Spain, and particularly attractive areas on the island – such as Puerto Andratx – are selling quickly and correctly-priced.

It seems that opportunities to buy on Mallorca are probably as good as they will ever be. Investors can be sure that they will get their dream property for a fair price, and have peace of mind that it will be an excellent investment.

Paul is a journalist and author of numerous blogs and web sites. This latest web site launched some twelve months ago is dedicated to Mallorca Property. The site features property from all over island including exceptional bargains and even bank repossessed properties in Mallorca at significantly discounted rates.

Eligibility For Property Sales Tax Reductions In Alicante

We all have to suffer the payment of taxes on already bloated property prices. Despite the downturn in the economy forcing a reduction in prices especially in the coastal areas of Spain, many people, especially the young, find it difficult to get on the property ladder in Spain.

This is a result of not just low incomes but also the difficulty in putting together a deposit given the reduced mortgages that are now being offered by the banks here. However, there are some initiatives currently being rolled out in Spain to attempt to make home buying by first time buyers “” as well as other identified groups “” somewhat easier.

This is principally being carried-out by introducing tax-breaks or reductions in the applicable property sales tax rate to these identifiable groups. The central government has devolved the property sales tax rate to the autonomous communities or regional governments in Spain, and all have taken on that responsibility and established the local rate of tax for such operations. Some have also opted to introduce income tax breaks for property investments of various types and by various identified groups in society.

In the Alicante area of Spain, property sales tax rates are set by the Valencia regional parliament and the standard rate is set at 7% in Article 16 Ley 11/2000. This rate is however subject to a number of exceptions as follows:

Ley 13/1997 provides that the acquisition of a property by a person suffering a physical or sensory disability of greater than 65% or a mental disability greater than 33% shall attract a rate of tax of 4% for that part of the property which they acquire.

Article 13 of Ley 13/1997 also provides that where the property being purchased is a property subsidised by the government then it is subject to a tax rate of 4% if the property is going to constitute the main home of the purchaser.

The same reduced rate of tax is applicable to property purchases effected by families considered as ‘large’ “” as per Article 13 as modified by Article 32 of Ley 14/2007. In addition the following criteria must be fulfilled:

– the property is purchased within 2 years of the family achieving the status of being ‘large’
– the property formerly used as a family home must be sold within the same period of time
– the new property must be at least 10% larger in area than the previous home
the total taxable income of the family unit may not exceed “‘44,074

Each of these reduction can represent a significant saving and it is worth confirming with the local office of Hacienda eligibility.